Skip to main content RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc Investor Presentation | Shale Experts
Loading...
Pm

RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc

Vanguard Natural Resources, Llc · Jul 27, 2010 · 20 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 1
    July 27, 2010 RBC Investor Meetings New York, NY
  2. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 2
    Overview of Vanguard Natural Resources Upstream Energy LLC, headquartered in Houston Initial Public Offering VNR - October 2007 Five strategic acquisitions totaling 350MM expanded geographic profile and commodity diversity…
  3. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 3
    Company Profile Company Profile EQUITY MARKET CAP (1) 551 million TOTAL DEBT 171 million LESS CASH 1 million ENTERPRISE VALUE 721 million (1) Market pricing as of July 23, 2010; includes 420m Class B units Positive Cash…
  4. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 4
    Multiple Operating Areas Appalachia Proved Reserves: 50.7 Bcfe(1) 93% Gas, 67% PDP 9.8 MMcfe/d current net production Permian Basin Proved Reserves: 7.0 MMboe (1) 84% oil and 67% PDP 1.4 Mboe/d current net production South…
  5. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 5
    2009 - Growth in South Texas Acquisition from Lewis Energy, closed August 2009 for 52.3 million, cash funded with proceeds of equity offering Lewis to operate and conduct PUD drilling program through 2015 (7 wells per year)…
  6. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 6
    2009 - Growth in Permian Basin Acquisition of producing assets in Ward County closed December 2009 for 55 million cash funded with equity proceeds Increased net oil production from the Permian by more than 100% High margin…
  7. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 7
    2010 Mississippi Acquisition Acquisition of producing assets in Mississippi, Texas and New Mexico closed May 2010 for 113.1 million cash funded with equity proceeds Inventory of infill PUD locations to develop oil reserves with…
  8. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 8
    Growth and Diversification 12/31/07*: OIL, GAS AND NGL 3/31/10**: OIL, GAS AND NGL 1.5 , 2% 21.4, 12% GAS, BCF GAS, BCFE OIL, BCFE 84.8, 49% OIL, BCFE 66.6, 39% NGL, BCFE 65.3 , 98% 12/31/07*: BCFE BY AREA 3/31/10**:…
  9. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 9
    Acquisitions Drive Reserve Growth Reserves (Bcfe) * 12/31/2007 12/31/2008 12/31/2009 12/31/2007 12/31/2008 12/31/2009 3/31/2010* * Based on Internal Engineer Reserve Report as of 3/31/10 and including the impact of the Parker…
  10. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 10
    Advantages of Vanguards LLC Structure LLC Partnership structure results in lower cost of capital No entity level income tax is competitive advantage in A&D market No Incentive Distribution Rights (IDRs) Investors share equally in…
  11. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 11
    FINANCIAL OVERVIEW 12
  12. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 12
    Hedges Mitigate Distribution Risk Approximately 82% of expected natural gas production (total proved) through 2011 is hedged via a combination of swaps and collars at a weighted average floor price of 8.07 per MMBtu: 2010 2011 %…
  13. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 13
    Hedged Cash Flow=Stable Distribution Coverage 2010 Natural Gas Prices (/MMBtu) 2.00 3.00 4.00 5.00 6.00 2010 Crude Oil Prices WTI 50.00 1.30x 1.29x 1.28x 1.26x 1.25x 60.00 1.37x 1.36x 1.34x 1.33x 1.32x (/Barrel) 70.00 1.44x…
  14. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 14
    Yield Compression Continues Average Yield 2004 2005 2006 2007 2008 2009 YTD Current Liquids T&S 6.5% 6.2% 6.8% 6.1% 8.3% 8.2% 6.9% 7.6% Natural Gas T&S 6.8 6.4 6.7 6.1 7.8 8.1 6.8 6.9 Natural Gas G&P 6.8 5.9 6.2 5.5 12.1 12.4 7.9…
  15. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 15
    16 (100.0%) (50.0%) 0.0% 50.0% 100.0% 150.0% 200.0% XTEX 167.3% CQP 113.2% WPZ 91.9% BBEP 80.0% APL 78.2% LGCY 73.7% Note: Market data as of 6/1/2010. RGNC 72.3% EROC 64.0% NGLS 59.0% DPM 57.6% NMM 51.1% VNR…
  16. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 16
    Comparable Company Distribution Yields CURRENT DISTRIBUTION YIELDS OF PEER GROUP 12% 10.3% 10% 8.3% 8.4% 8.8% 7.9% 8.1% 8% 7.3% 6% 4% 2% 2.00 2.08 3.02 2.52 2.20 2.00 0% PSE *CRT LGCY EVEP LINE VNR ENP *CRT Average…
  17. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 17
    Profitable Growth Through Accretive Acquisitions 2.18** 2.00 1.82 1.70* 12/31/2007 12/31/2008 12/31/2009 12/31/2010(E) *Annualized quarterly distributions **Based on current distribution rate of .55 and Q1 2010…
  18. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 18
    Conservative Balance Sheet ( in millions) June 30, 2009 Current (1) Facility Size 400 400 Borrowing Base 154 240 Amount Outstanding 133 171 Borrowing Availability 22 69 Maturity Date March 31, 2011 October 1, 2012 Interest Rate…
  19. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 19
    Major Taxation Points All investors receive a partnership K-1 at the end of the year K-1 allocates the partnerships income and expenses to individual investors based on their percentage ownership of the partnership Quarterly…
  20. RBC INVESTOR MEETINGS – Vanguard Natural Resources, Llc – slide 20
    Key Investor Considerations High quality, long lived reserves Asset base generates stable cash flow Multi-year hedge program mitigates commodity risk Geographic and commodity diversity LLC structure gives unitholders a voice…

From the store

Browse maps, data & reports in the Shale Experts store